Advanced analytics strategy formulation

[摘要] ENGLISH ABSTRACT: Despite the high potential impact of advanced analytics on the performance of businesses aroundthe world, its uptake and application in an integrated and strategically aligned manner has beenlimited. This problem is more pronounced with specific reference to optimization. Optimizationmethods lag behind other analytical methods such as data visualization and predictive modelsin terms of their level of adoption in organizations.This research suggests that part of the problem of limited application and integration lies in anoverall inability of companies to develop and implement an effective advanced analytics strategy.The primary objective of this research is therefore to establish an approach for the developmentof an advanced analytics strategy for a company. Due to the absence of well described examplesor published research on the subject it was necessary to generate insight and knowledge usinga research approach that allowed for the development, testing, and improvement of a strategyover multiple cycles. Such a research approach presented itself in the form of action research.An initial advanced analytics strategy was developed for one of the subsidiary companies ina group of companies. The subsidiary company specializes in the importation, distribution,and marketing of industrial fasteners and has branches throughout South Africa. The strategydocument was presented to the senior decision makers in the holding company for evaluation.The feedback from the evaluation was used to formulate changes to the initial strategy aimed atimproving its alignment with the decision makers' thinking on advanced analytics and increasingthe probability of its implementation. The suggested changes from the first research cyclewere used to define the second cycle strategy framework. The second cycle strategy frameworkincluded a strategy development process that consisted of three main steps:• Establishing business focus and relevance which included an assessment of the value creatingpotential of the business, identifying and prioritizing of value creating opportunities,and an assessment of key underlying decision processes,• Developing business relevant concept applications which included determining their potentialvalue impact and creating a ranked pipeline of decision optimization applications.• Selecting concept applications and moving them into production.The strategy development process was informed by a number of different models, methods andframeworks. The most important model was a detailed valuation model of the company. Thevaluation model proved to be invaluable in identifying those aspects of the business where animprovement will result in the highest potential increase in shareholder value.The second cycle strategy framework will be used to develop an improved version of the advancedanalytics strategy for the researched company. Moreover, the generic nature of theframework will allow for it to be used in the development of advanced analytics strategies forother companies.

[发布机构] Stellenbosch University